Turkey Introduces New Restrictions on Hedge Fund Holdings
Türkiye's capital markets regulator has introduced new restrictions aimed at curbing potential market manipulation by hedge funds, according to a report. The rules limit the percentage of publicly traded shares that hedge funds can hold in individual companies based on their free-float ratio—ranging from 2% to 8%. Additionally, hedge funds are restricted from allocating more than 20% of their assets into securities issued by affiliated or controlled entities. The regulations also cap large concentrated positions within a fund's portfolio. Securities representing over 5% of the fund’s total assets cannot collectively exceed 20% of its holdings. Hedge funds have until December 31, 2026 to comply with these new rules and must reduce any excess holdings by at least one-third by October 31 and two-thirds by November 30. The move follows concerns about artificial price inflation and potential manipulation in stocks with low liquidity. Some hedge funds have been accused of influencing stock valuations through related-party transactions, prompting calls for stricter oversight.
Topics: capital markets hedge funds regulation